Archive for November 2015

Central Bank Watch

Bank of Japan Retains Status Quo in Penultimate Board Meeting of 2015

November 19, 2015

The one and only tweak of quantitative stimulus occurred at the end of October 2014, when the Board raised the targeted annual growth in Japan’s monetary base and planned asset purchases to JPY 80 trillion.  Policymakers have managed to stick to those parameters and reaffirmed them at the November policy meeting.  At the prior meeting […] More

New Overnight Developments Abroad - Daily Update

Signals from the Fed, Bank of Japan and ECB

November 19, 2015

FOMC minutes from the October meeting released Wednesday afternoon showed most members inclined to hike the federal funds rate in December but also underscored an intention to normalize policy gradually thereafter and spreading doubts that the peak can lie much above 2%. A five hour 20 minute meeting of the Bank of Japan Board over […] More

New Overnight Developments Abroad - Daily Update

FOMC Minutes to Be Released Later Today

November 18, 2015

Meanwhile, more news emerged from Paris.  Police stormed a suburban house where the architect was believed to be staying.  Two dead, 7 arrested, 4 police injured in violent exchange.  Also, bomb threats were made against some Air France flights. Share prices fell 1.0% in China, and the yuan strengthened somewhat.  There was a bit a […] More

Central Bank Watch

Hungarian Monetary Policy Left Unchanged

November 17, 2015

Hungary’s central bank interest rate was kept at 1.35%.  A released statement notes continuing spare capacity and low inflation.  The output gap is not expected to close completely until the end of the forecast period, and stable inflation expectations in line with the target is seen.  “If the assumptions underlying the Bank’s projections hold, the […] More

Central Bank Watch

Indonesia’s Reserve Requirement Lowered 50 Basis Points

November 17, 2015

At the November Board of Governors meeting at Bank Indonesia, officials agreed to ease monetary policy via a reduced via a reduction of the primary reserve requirement in Rupiah from 8.0% 7.50.  The BI reference interest rate and the central bank deposit rate were left unchanged at 7.5% and 5.5%, respectively.  These had been cut […] More

New Overnight Developments Abroad - Daily Update

Share Prices Up, Dollar Fairly Steady Awaiting U.S. CPI and Industrial Production Data

November 17, 2015

The dollar is unchanged against the Canadian dollar and sterling.  It has risen 0.3% versus the Swiss franc and kiwi, 0.2% relative to the euro, and 0.1% vis-a-vis the yuan and yen but lost 0.3% against the Australian dollar. The Aussie dollar was buoyed by Reserve Bank of Australia minutes of the November 3rd Board […] More

Central Bank Watch

Central Reserve Bank of Peru

November 16, 2015

As at October’s Board meeting, Peruvian monetary policy makers agreed not to change their key 3.5% interest rate.  A 25-basis point hike in September had reversed the direction of policy after cuts of that size engineered in November 2013, July 2014, September 2014 and January 2015.  Prior to September 2015, the monetary policy rate had […] More

Foreign Exchange Insights and Next Week

Terrorism Tax

November 16, 2015

Although hardly a new 21st century phenomenon, the presence of terrorism and its economic fallout escalated in the wake of the September 2001 attacks.  It’s been a lose-lose force because a dampening impact on real GDP growth results whether victimized nations over- or under-react to the extreme Jihadist challenge to their way of life.  In […] More

New Overnight Developments Abroad - Daily Update

Dollar Calm All Things Considered

November 16, 2015

In the wake of the Jihadist attacks in Paris Friday night, the dollar has risen 0.1% against the euro, 0.3% versus the yen and Aussie dollar, and 0.2% relative to sterling.  The Swissie and yuan edged up 0.1% against the dollar.  The kiwi is 0.8% weaker. Share prices fell 1.5% in South Korea, 1.8% in […] More

Foreign Exchange Insights and Next Week

Next Week

November 13, 2015

Central Bank Developments:  Interest rate policy meetings are scheduled in Japan, Hungary, Indonesia, and South Africa.  Policy changes are not predicted.  Minutes will be published for the last such meetings of the FOMC, Reserve Bank of Australia Board, and ECB Governing Council.  Fed officials speaking in public next week include Dudley, Lockhart, Mester, Kaplan, Bullard […] More

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